NY Times indicated that President Obama is considering to push early next year for an overhaul of the income tax code to lower rates and raise revenues in what would be his first major effort to begin addressing the long-term growth of the national debt. I think that the 2012 presidential election has begun already - and we haven't even sworn in the new congress."
You can view the entire news conference below; however, here's what President Obama said in the news conference when he was talking about the tax compromise with the Republicans, “In the next two years we’re going to have a big debate about taxes and we’re going to have a big debate about the budget. And we’re going to have a big debate about the deficits, and Republicans are going to have to explain to the American people over the next two years how making those tax cuts for the high end permanent squares with their stated desire to start reducing deficits and debt. The GOP formula doesn’t work, but they’ll have the opportunity to make the case, I’ll have the opportunity to make the case that we’ve got to have tax reform, that we’ve got to simplify the system, that we do have to cut spending where it makes sense, but we’re also going to have to make sure that we’ve got a tax code that is fair. And that looks after the interest of middle class Americans and continues to grow the economy.”
Dr. Krause continued, "So what does this mean? The Obama administration will take the lead in tax reform and simplification by offering to close loopholes and take away many corporate and individual tax deductions. The stated objective will be to rid the tax code of its complex deductions, credits and exemptions; however, it will also be a way to increase overall tax revenues. The tax reform and simplification plan will be based on the recommendations of the Bowles-Simpson fiscal commission to reduce the federal debt. Like I said before, he is taking the plays right out of the Clinton 1994 playbook and veering to the political middle before the new congress even convenes - it will become his issue and when the economy grows, he'll get the credit. It's all politics and he's going to seize the issue of tax simplification and run with it. And quite frankly, it might be well received by the financial markets!"